Chapter 3: Operating Decisions and the Income Statement

Checklist of Key Figures

Chapter 3: Operating Decisions and the Income Statement

Exercises

E3–1 No key figure

E3–2 No key figure

E3–3 Req. 1: Net income = $15,000

E3–4 Net income, cash basis = $2,400; Net income, accrual basis = $2,200

E3–5 No key figure

E3–6 No key figure

E3–7 Req. 3: revenues – expenses = $4,600

E3–8 No key figure

E3–9 Net income = $2,760

E3–10 No key figure

E3–11 No key figure

E3–12 No key figure

E3–13 Req. 2: Ending balance of Accounts Receivable = $39,000

E3–14 No key figure

E3–15 Req. 2: Ending balance, Cash = $15,800; Req. 3: Net income = $7,580

E3–16 No key figure

E3–17 Req. 1 b. Cash flow used for operating activities = $13,800

E3–18 Req. 2: Ending balance, Cash = $5,406

E3–19 No key figure

E3–20 Net loss = $444; Net cash flow used for operating purposes = $2,124

E3–21 Req. 1: Net income = $5,300; Total assets = $73,500

E3–22 Return on assets, 2008 = 0.091

E3–23 Req. 2: Ending balance, Cash = $6,800; Req. 3: Net income = $15,400

Req. 4: Asset turnover = 2.43

E3–24 Req. 2: Unearned revenue = $315

E3–25 No key figure

Problems

P3–1 (m) debit: 8, 14; credit: 1 – (n) debit: 15; credit: 1, 10

P3–2 No key figure

P3–3 Req. 2: Cash = $14,806

Req. 3: Net income = $931

Req. 5: Return on assets, 2010 = 0.32

P3–4 No key figure

P3–5 Req. 2: Cash = $193

Req. 3: Net loss = $109

Req. 4: Total liabilities = $3,932

Req. 5: Cash flow used for operations = $371

Req. 6: Asset turnover = 0.16

P3–6 No key figure

P3–7 Barrick Gold, ROA, 2005 = 6.10%

P3–8 No key figure

P3–9 No key figure

Alternate Problems

AP3–1 (e) debit: 5; credit: 1, 8 – (o) debit: 8, 14; credit: 1

AP3–2 No key figure

AP3–3 Req. 2: Cash = $58,660

Req. 3: Net income = $22,990; Total assets= $302,350

Req. 5: Asset turnover, 2009 = 1.13

AP3–4 No key figure

AP3–5 Req. 2: Cash = $1,253

Req. 3: Net income = $98; Total assets = $14,701

Req. 5: Return on assets = 0.67%

AP3–6 No key figure

AP3–7 Canada Post, Total Asset Turnover Ratio, 2006 = 1.56

Research in Motion, ROA, 2005 = 9.33%

Cases and Projects

CP3–1 Req. 3: Accounts receivable = $1,267,339

Req. 6: Asset turnover = 1.89

CP3–2 Req. 4: Return on assets, Van Houtte = 0.066

Req. 5: Cash = $57,425,000

CP3–3 Req. 1: Asset turnover, 2007 = 1.03

Req. 2: Debt-to-equity, 2006 = 0.61

CP3–4 No key figure

CP3–5 No key figure

CP3–6 Req. 1: Ending balance, Cash = $29,300; Req. 2: Total assets = $141,000

CP3–7 No key figure

CP3–8 No key figure

CP3–9 No key figure

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